Lou81

Thank you!

Hello. Participant is looking to take a loan to purchase a primary residence. He is purchasing a house. However, he is not planning on moving in right away, as he has a lot of repairs to do. Is there a time frame to consider this his primary residence? Thanks!

Having a discussion in our office..... Plan has immediate entry for deferrals and 90 days for match and profit sharing enter 1st of month following. (MT & PS have no allocation requirements) I have a participant hired 9/23/2024 and a termination date is 12/20/2024. Was not employed on 1/1/2025 but received a final payroll on 1/3/2025. Would she be entitled to receive the match and profit sharing?

Thanks Cusefan! So since neither hold out or rule of parity are check I will count the service he had is 2016...

Good Morning, Need some help- rehires always get me if they did not meet the eligibility requirements.... EE worked 9/19/2016-12/1/2016 Rehired 9/5/2025 on FTW document. 6 e is marked for 6 months of service, elapsed time. With monthly entry dates. Neither Rule of parity or one year hold out are elected. Since he was gone more than 12 month and more than a 5 year break in service and he did not meet eligibility, does his 6 months start over? Appreciate your input! Thanks!

That was my thought too Bri... Thank you~

Plan fails the ADP test. Running the corrections in FTW. Question - when including the earnings, do you net the fees or just use the earnings? Thanks!

Thank you ESOP Guy!

I have a new plan that has elapsed time for vesting. I just want to confirm that I am doing this correctly. The participant would have to be employed on the anniversary date to received vesting credit, correct? i.e. date of hire 4/5/2023. Terminated 12/31/2024. Therefore, he had 4/5/2023-4/5/2024 = 1 year. 4/5/2024-12/31/2024 = 0 I appreciate your help!

RMD's used to be simple..... I have a participant who i just found out passed away 12/2023. He was over 80 years old. He has a surviving spouse who is the beneficiary. He never took an RMD as he was still employed and not an owner. Client is saying that they do not have to take an RMD. Since he wasn't required to take an RMD prior to death, can the 10-year payout be used? I'm thinking she should have taken the 2023 and 2024 RMD. I appreciate any help. Thanks!

Thank you for all the information! Very helpful!

Health plans and COBRA are not my area of experience. A question has arisen regarding the continuation of COBRA. Can an employer elect can to extend the COBRA coverage past the maximum length of time for certain terminated employees/dependents? Found this on the DOL website. It appears it can be but..... Q11: How long does COBRA coverage last? COBRA requires that continuation coverage extend from the date of the qualifying event for a limited period of 18 or 36 months. The length of time depends on the type of qualifying event that gave rise to the COBRA rights. A plan, however, may provide longer periods of coverage beyond the maximum period required by law. When the qualifying event is the covered employee's termination of employment or reduction in hours of employment, qualified beneficiaries are entitled to 18 months of continuation coverage. When the qualifying event is the end of employment or reduction of the employee's hours, and the employee became entitled to Medicare less than 18 months before the qualifying event, COBRA coverage for the employee's spouse and dependents can last until 36 months after the date the employee becomes entitled to Medicare. For example, if a covered employee becomes entitled to Medicare 8 months before the date his/her employment ends (termination of employment is the COBRA qualifying event), COBRA coverage for his/her spouse and children would last 28 months (36 months minus 8 months). For more information on how entitlement to Medicare impacts the length of COBRA coverage, contact the Department of Labor's Employee Benefits Security Administration at askebsa.dol.gov or by calling 1-866-444-3272. For other qualifying events, qualified beneficiaries must be provided 36 months of continuation coverage. Appreciate any information. Thank you!

Peter, Empower has self certification procedures that state ... For Self-certified hardships, the participant must agree to retain all documentation substantiating the hardship. In the event a participant requests three or more hardships within a plan year, the participant must provide additional information about the third (and all subsequent) hardship requests as described in these Procedures.

Thanks Peter - the employer is questioning the validity of the request and asking if they can deny it. I did not ask any further details. Also, partly what prompted the question is we received an email from Empower the other day.... it states, that a participant may self certify up to 2 hardships per year. If the participant requests 3 or more, administrative review and approval is required. Plans have the option to limit the number of hardships a participant may take in a plan year to 2.

Hello, i have a plan that allows self certification for hardships on line through Voya. They have a participant that is now requesting his 3rd hardship in 6 months. Can the plan sponsor set up administrative procedures to request supporting documentation if the participant has requested more than 2 hardships or if they feel it may not be for a hardship reason? Appreciate your thoughts.

I have a plan that allows forced cash distributions for balances less than $1,000. FTW document. Participant terminated and took a distribution earlier this year, well over $1,000. She was entitled to a small profit sharing from 2023. Her balance is less than $1,000. Can I force her out? Even though at one point it was over $1,000. I really thought i read, i could but i can not find anything definite. Thank you!

Thanks Effen! I couldn't find a time frame that we needed to give.

I have a cash balance plan that is terminating. We sent the distribution packages to the participants the beginning of August. Several the of participants have a lump sum balance less than $3,000 The owners are anxious to get there money. I know we need to do a diligent search but I can not find anything that give a time frame we need to wait before we can send to the PBGC. Is there a time frame? Thanks!

Thank you for your response!

I have a plan that has terminated. The owner retired and sold the business. Preparing the final 5500. Do we need to change the address on the 5500 to the home address of the plan sponsor or leave as is (which is the company address)? Thoughts? Thank you!

Thank you Luke. There were only 2 and they voluntarily terminated. No partial plan term.

Thank you CB! appreciate it!

I have a plan that has terminated effective 12/31/2023. I am completing their 12/31/2023 plan year end work. There were 3 participants that took a full distribution in 2023 (prior to the plan term or knowledge of the plan term). They were not fully vested to the profit sharing. 2 terminated in 2023 and 1 in 2020. The money was forfeited and used in 2023. Do we need to restore the accounts of the 2 participants that termed and distributed in 2023? If yes, where do I find, exact DOL or IRS language? Thank you!

Thank you- Belgarath. it appears the procedures only state "upon receipt of a DRO"

I have a participant that is requesting a loan. He indicated it is for a divorce. The plan does not require spousal consent We do not have a DRO. is there anything that would restrict him from taking the loan at this time? Thank you!